Correlation Between Siit Global and Kopernik Global
Can any of the company-specific risk be diversified away by investing in both Siit Global and Kopernik Global at the same time? Although using a correlation coefficient on its own may not help to predict future stock returns, this module helps to understand the diversifiable risk of combining Siit Global and Kopernik Global into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between Siit Global Managed and Kopernik Global All Cap, you can compare the effects of market volatilities on Siit Global and Kopernik Global and check how they will diversify away market risk if combined in the same portfolio for a given time horizon. You can also utilize pair trading strategies of matching a long position in Siit Global with a short position of Kopernik Global. Check out your portfolio center. Please also check ongoing floating volatility patterns of Siit Global and Kopernik Global.
Diversification Opportunities for Siit Global and Kopernik Global
0.67 | Correlation Coefficient |
Poor diversification
The 3 months correlation between Siit and Kopernik is 0.67. Overlapping area represents the amount of risk that can be diversified away by holding Siit Global Managed and Kopernik Global All Cap in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Kopernik Global All and Siit Global is a relative statistical measure of the degree to which these equity instruments tend to move together. The correlation coefficient measures the extent to which returns on Siit Global Managed are associated (or correlated) with Kopernik Global. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Kopernik Global All has no effect on the direction of Siit Global i.e., Siit Global and Kopernik Global go up and down completely randomly.
Pair Corralation between Siit Global and Kopernik Global
Assuming the 90 days horizon Siit Global Managed is expected to generate 0.94 times more return on investment than Kopernik Global. However, Siit Global Managed is 1.06 times less risky than Kopernik Global. It trades about 0.06 of its potential returns per unit of risk. Kopernik Global All Cap is currently generating about 0.04 per unit of risk. If you would invest 972.00 in Siit Global Managed on December 4, 2024 and sell it today you would earn a total of 202.00 from holding Siit Global Managed or generate 20.78% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Together |
| Strength | Significant |
| Accuracy | 99.8% |
| Values | Daily Returns |
Siit Global Managed vs. Kopernik Global All Cap
Performance |
| Timeline |
| Siit Global Managed |
| Kopernik Global All |
Siit Global and Kopernik Global Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Siit Global and Kopernik Global
The main advantage of trading using opposite Siit Global and Kopernik Global positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Siit Global position performs unexpectedly, Kopernik Global can make up some of the losses. Pair trading also minimizes risk from directional movements in the market. For example, if an entire industry or sector drops because of unexpected headlines, the short position in Kopernik Global will offset losses from the drop in Kopernik Global's long position.| Siit Global vs. Prudential California Muni | Siit Global vs. Bbh Intermediate Municipal | Siit Global vs. Access Capital Munity | Siit Global vs. Legg Mason Partners |
| Kopernik Global vs. Jpmorgan Large Cap | Kopernik Global vs. American Mutual Fund | Kopernik Global vs. Virtus Nfj Large Cap | Kopernik Global vs. Wasatch Large Cap |
Check out your portfolio center.Note that this page's information should be used as a complementary analysis to find the right mix of equity instruments to add to your existing portfolios or create a brand new portfolio. You can also try the Portfolio Optimization module to compute new portfolio that will generate highest expected return given your specified tolerance for risk.
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